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The effect of online social value on satisfaction and continued use of social media

  • Empirical Research
  • Published:
European Journal of Information Systems

Abstract

Social media offers customers a unique service value proposition. Recognizing service value as a pivotal concept, this study develops an aggregate construct of online social value, whereby customers evaluate utilitarian and hedonic benefits relative to what they must sacrifice in effort and risk in deriving a value calculation of online social networking services which predicts satisfaction and continued use of online social media, such as Facebook. By empirically testing a model that explains online social value, this research contributes to information systems (IS) theory by introducing a customer value perspective in the social media context and helps service providers by identifying factors predicting satisfaction and continued use that might be employed to improve offerings to keep customers coming back.

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Authors and Affiliations

  1. Department of Digital Media & Information Systems, King University, U.S.A.

    Tao Hu

  2. Management Information Systems, Fogelman College of Business and Economic, University of Memphis, Memphis, U.S.A.

    William J Kettinger

  3. Management Information Systems, University of Memphis, Memphis, U.S.A.

    Robin S Poston

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  1. Tao Hu
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  2. William J Kettinger
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  3. Robin S Poston
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Appendices

Appendix A

Respondent demographics

Table A1

Table A1 Demographics of respondents (N=518)
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Appendix B

Measurement scales

Table B1

Table B1 Definitions and sources of constructs
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Appendix C

Formative construct of continued use

Three measurement indicators of continued use were usage duration, frequency, and intensity (Venkatesh et al, 2008; Aurier & N’Goala, 2010). On the basis of the decision rules outlined in Jarvis et al (2003) and our analysis of measurement characteristics of continued use, we utilize a formative construct conceptualization. With relatively high correlations for duration and frequency (0.57), duration and intensity (0.50), and frequency and intensity (0.55), the conceptualization of continued use allows us to examine the structural effect of the given latent construct as opposed to that of multiple individual variables, enhancing the theoretical parsimony of the research model (Cenfetelli & Bassellier, 2009), reflecting a richer, higher-order construct (Burton-Jones & Straub, 2006).

Following established guidelines for testing indicator collinearity and validity of formative constructs, we conducted PLS analysis and presented a validity test model for the measurement of continued use as shown in Figure C1. We find maximum variance inflation factor of 1.37 is below the recommended cut-off value of 3.33 (Diamantopoulos & Siguaw, 2006; Petter et al, 2007). Thus, no indication of multicollinearity exists. Figure C1 illustrates the measurement validity of the formative construct using the weight or partial effect of the indicators on the intended construct (Cenfetelli & Bassellier, 2009). Each indictor’s effect on continued use (β=0.40 for duration, 0.41 for frequency, and 0.39 for intensity) are significant (P<0.001), supporting its formative nature (Barki et al, 2007). Finally, in validating the external validity of continued use, we examined the proposed nomological relationships (Diamantopoulos & Winklhofer, 2001), finding acceptable model fit (APC=0.349, P<0.001; ARS=0.251, P=<0.001; AVIF=1.372). The PLS results in Figure C1 demonstrate the significant relationships between online social value and continued use (β=0.11, P<0.001), and satisfaction and continued use (β=0.43, P<0.001), with online social value and satisfaction explaining 24% of the variance in continued use. This supports the external validity of continued use as a formative construct.

Figure C1
figure 4

Validity test for continued use.

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Appendix D

Second-order reflective constructs of utilitarian and hedonic benefits

For the utilitarian benefits construct, we estimated the first-order measurement model with eight relational and informational benefit indictors. For hedonic benefits, we also estimated the first-order measurement model with seven enjoyment and curiosity fulfillment indicators. Both estimations illustrate support for the models. We used a hierarchical components approach to estimate the second-order reflective constructs (Lohmoller, 1989; Tenenhaus et al, 2005), and created a reflective hierarchical construct model (Wetzels et al, 2009). As illustrated in Figure D1, the CR, AVE, and Cronbach’s α of the two second-order reflective measures show that the internal reliability of the two second-order constructs is greater than the recommended threshold of 0.70, and the AVEs are equal to or greater than the recommended threshold of 0.50 (Fornell & Larcker, 1981; Bagozzi & Yi, 1988; Nunnally & Bernstein, 1994; Chin, 1998). Also demonstrated in Figure C1, the loadings of the first-order latent variables on the second-order constructs are all significant. The analyses support that the first-order dimensions are reflective indicators of the second-order constructs.

Figure D1
figure 5

PLS results of second-order reflective constructs.

Notes: AVE=Average Variance Extracted and CR=Composite Reliability

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Figure D1

Appendix E

Mediation of satisfaction

To illustrate the partial mediating effect of satisfaction on the influence of online social value to continued use, we follow the three-step analysis espoused by Baron & Kenny (1986). First, we found that online social value alone had a positive direct effect on continued use (β=0.53, R2=0.28, P<0.001); second, we found that online social value had a positive direct effect on the mediator, satisfaction (β=0.67, R2=0.47, P<0.001). Finally, we found that online social value and satisfaction jointly had a positive significant effect on continued use (β=0.37, P<0.001; β=0.26, P<0.001, respectively; R2=0.32). These results support that the influence of value calculations on continued use is partially mediated by satisfaction.

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Hu, T., Kettinger, W. & Poston, R. The effect of online social value on satisfaction and continued use of social media. Eur J Inf Syst 24, 391–410 (2015). https://doi.org/10.1057/ejis.2014.22

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